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Withholding Tax

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(Querist)
13 January 2020 An Indian Company is making payment to a German Non Resident for Booth Space Booking which includes : (1) Payment for Raw Space, (2) Professional Fees, (3) Other Charges amounting to 10000 Euro. Is there any liability for deducting Withholding Tax and issuing 15CA/CB. If yes, at what rate and if not, what justification can be given.
Kindly suggest urgently.
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CA Mohit Bansal

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CA Mohit Bansal (Expert)
13 January 2020 Yes the TDS should be deducted @ 20% on all the above mentioned payments. Form 15CA/CB should be filed for payment to non residents as the Bank may not process foreign remittance in absence of the statutory forms
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swasti

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swasti (Querist)
13 January 2020 Thanks Sir for the suggestion. But Sir, isn't it Business Profit to be taxed in Other State as per Article 7 of the Indo-German DTAA and thus TDS not applicable. Here one more thing is to be mentioned which was perhaps left in the original query (I beg pardon for this) that the Booth space booking activity has been occurred in Germany and not in India. In this scenario, what would be the suggestion as DTAA prevails over IT Act?
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swasti

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swasti (Querist)
13 January 2020 Thanks Sir for the suggestion. But Sir, isn't it Business Profit to be taxed in Other State as per Article 7 of the Indo-German DTAA and thus TDS not applicable. Here one more thing is to be mentioned which was perhaps left in the original query (I beg pardon for this) that the Booth space booking activity has been occurred in Germany and not in India. In this scenario, what would be the suggestion as DTAA prevails over IT Act?
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Aashok Kumar Sharma online

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Aashok Kumar Sharma online (Expert)
04 June 2020 Please do mail me at ashakantasharma@gmail.com with all the details for complete analysis of the same.
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